Incheon Airport wants airlines to cover twice as much of its facility costs

The 24-year freeze applies to the passenger service charge, unchanged since 2002. Landing fees have been frozen for 10 years, aircraft parking and boarding bridge charges for 22 and apron charges for 25 ^[5]. The corporation argues that holding prices still amounted to a cut. "Keeping charges frozen for so long despite steadily rising prices has had the same effect as cutting them every year," it said ^[6].

The steeper change is on the airline side. Cost recovery measures how much of the cost of running the facilities the fees cover, and the target takes landing fees and other charges from 44 percent in 2024 to about 88 percent ^[4]. If costs stay flat, those charges would have to bring in twice what they collect today ^[19]. The corporation's one sensitivity figure is that a 10 percent rise in charges adds about 100 billion won a year ^[11]. By that figure, the charges being repriced now bring in roughly 1 trillion won a year ^[18].

Non-aviation income was 62 percent of revenue in 2024, and duty-free stores produced 60.8 percent of commercial revenue ^[8]. That puts duty-free at up to about 37.7 percent of the total, almost exactly the 38 percent that all aviation charges brought in ^[20][7]. The corporation expects that income to weaken after Shilla Duty Free and Shinsegae Duty Free left some zones last year and the space was rebid at lower rents ^[9].

The corporation also pitched the plan as income for the government. At its 46 percent payout rate, about 46 billion won of each 100 billion won raised would go to the state ^[11]. Applied to last year's 691.4 billion won net profit, the same rate implies about 318 billion won for the government ^[15][23]. The spending plan is up to 18 trillion won over a decade for expansion and a Terminal 1 renovation ^[10]. That averages about 1.8 trillion won a year, 2.6 times last year's profit ^[21][22]. The corporation's dividend estimate assumes it keeps paying out almost half its profit while airlines and passengers fund that build ^[11].

The transfer charge rises 50 percent, against about 30 percent for departures ^[3][1]. So the biggest percentage increase lands on the passengers the corporation's hub argument is about ^[2].

The government said in June that electricity and gas rates would stay frozen through the second half ^[17], and it could shelve the plan. That is what Rep. Yoon Jong-kun, the ruling Democratic Party lawmaker who received the corporation's data, wants ^[1]. "With passenger demand back to prepandemic levels, any push to raise charges that could affect everyday prices should be put on hold," he said ^[16]. It could instead approve the 5,000 won passenger charge and leave the 88 percent figure to the consultation with carriers ^[4]. Or both could pass, and airlines could put higher landing fees into ticket prices ^[12]. That would come on top of fuel surcharges that hit record highs this spring ^[13].

I'd expect the middle outcome. The passenger charge rests on a price set in 2002, while doubling cost recovery has to go through the carriers ^[5][4]. The case against any rise is the operator's own results: a record 74.07 million passengers last year and a third straight year of profit ^[14][15]. I am wrong if the full 88 percent target is approved while utility rates are still frozen.